Nalcor Energy reports first quarter results

May 13, 2016, St. John’s, NL – Nalcor Energy released its financial update for the first quarter ended March 31, 2016 today.

Key First Quarter Financial Highlights

• YTD profit of $28.0 million, a decrease of $1.3 million over the first quarter of 2015, largely as a result of an increased loss in Hydro Regulated and offset partially by lower operating costs.
• Operating profit of $35.0 million, $5.7 million higher than the same period in 2015.
• YTD capital expenditures of $558.9 million, an increase of approximately 13 per cent over the same period in 2015.
• Total assets grew $0.2 million during the first quarter to a total of $12.5 billion.
• Debt to capital ratio of 64.1 per cent as at March 31, 2016.
• Funds from operations for the period of $66.5 million, a $13.0 million improvement compared to the same period in 2015.
• EBITDA for the period of $77.7 million, a $10.3 million improvement compared to the same period in 2015.

First Quarter Earnings and Capital Expenditures

Profit for the first quarter totaled $28.0 million, compared to $29.3 million for the same period in 2015. This was due mainly to an increased loss in Hydro Regulated, attributable to higher gas turbine fuel costs and adjustments related to the Prudence Order received from the Public Utilities Board (PUB), and was partially offset by lower operating costs. Operating profit of $35.0 million was $5.7 million higher year-over-year for the first quarter, due to lower overall operating costs, increased offshore oil production, lower power purchased in Hydro Regulated, and gains on the settlement of commodity swaps. This increase was partially offset by lower realized oil prices, higher costs associated with gas turbine fuel, decreased revenue and increased depreciation, depletion and amortization.

Capital expenditures for the first quarter totaled $558.9 million. Nalcor’s assets continue to grow, totaling $12.5 billion as at March 31, 2016, an increase of $0.2 billion from the end of 2015. The company’s Statement of Financial Position remains strong, with a debt to capital ratio of 64.1 per cent as at March 31, 2016.

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